RMO No. 81-99: Prescribes the guidelines on the issuance of VAT Exemption Certificate to all qualified embassies and their personnel

Summary

RMO No. 81-99, issued November 5, 1999, prescribes guidelines on issuing the VAT Exemption Certificate (VEC) to qualified embassies and their personnel for purchases of goods and services in the Philippines.

Key points

1. Who issues the VEC. The International Tax Affairs Division (ITAD) issues the VEC. It bases this on an issued BIR Ruling and on the principle of reciprocity, as confirmed by the Office of Protocol of the DFA.
2. No previous ruling. If no earlier ruling exempts an embassy, a request for certification is treated as a request for a ruling.
3. Validity of the ruling. A ruling exempting an embassy and its personnel from VAT is valid and effective as long as the embassy stays in the updated listing of Diplomatic missions entitled to VAT exemptions.
4. Validity of the VEC. A VEC is valid and effective within the year of its issuance. It is renewable yearly upon the embassy’s application.

Who is affected

• Qualified embassies and their personnel

Deadlines and effectivity

• VEC valid within the year of issuance, renewable yearly

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.